Manitoba Public Insurance posted a net income of $41.9 million over the first six months of 2013 – more than a 100 percent increase ($20.7 million) over the same period last year.
"Our six-month results are satisfactory," said Heather Reichert, vice-president of finance and chief financial officer, in a press release Friday. "Our revenue, claims costs and investment income are well within expectations – which means we’re heading into the fall and winter months in a stable financial position."
According to the report, MPI investment income increased $20.5 million from first six months of last year primarily due to gains on the sale of equities, offset by the impact of increasing interest rates which decreased the value of the corporation’s bond portfolio.
Claims incurred for the six months, ending August 31, decreased by $4.5 million compared to last year due to a decrease of $11.2 million ─ 8.5 per cent ─ in bodily injury claims incurred. This was offset by an increase of $6.7 million in physical damage claims incurred.
"The corporation will continue to closely monitor its financial results," said Reichert. "While no one can predict the impact that future weather may have on claims costs, all other factors are expected to track well to budget."
For 14 of the last 15 years, the MPI has either held the line or reduced rates, according to the corporation, resulting in a cumulative, total rate decrease of 17.8 per cent for Manitoba vehicle owners.
Earlier this year, MPI applied for a rate increase of 1.8 per cent. Nearly 70 per cent of vehicles will increase or decrease by $20 or less for the 2014/15 insurance year, which takes effect March 1, 2014.